Data centers run on debt. That was a problem for bonds this year — and it’s only going to get worse.
Summary
Heavy borrowing to fund artificial intelligence data centers has overwhelmed investor portfolios and generated disappointing bond performance this year. This intense demand for capital is expected to persist while Democrats maintain control of Congress.
AI debt issuance this year overwhelmed investor portfolios, and has disappointed from a performance perspective. The funding need won’t get any better with Democrats in control of Congress.
Source: Read the full story at MarketWatch.com - Top Stories
Disclaimer: This content is for informational and educational purposes only and is not financial, investment or trading advice. Tech & Money Press is not a registered investment adviser or broker-dealer. Trading stocks, options and crypto involves substantial risk, including the loss of your entire investment. Do your own research and consult a licensed professional before making any financial decision. The authors may hold positions in the securities mentioned. News summaries are written with AI assistance from the original publisher's report and may contain errors; always check the original source. Full disclaimer.